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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Wellington Hds. | LSE:WLN | London | Ordinary Share | GB0009473900 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:1912D
Wellington Holdings PLC
22 September 2004
For Immediate Release 22 September 2004
WELLINGTON HOLDINGS PLC
Interim Results for the half year ended 30th June 2004
Sales up 12%; Operating Profit up 53%*;
Interim Dividend increased by 9% to 2.4p.
Wellington Holdings plc., the manufacturer and distributor of specialist polymer
seals for engineering and industrial applications worldwide, today announces
interim results for the half year ended 30th June 2004. Results show an increase
in turnover and operating profits, whilst margins increased to an excellent
15.6%
Commenting on the Group's performance, Chairman, Brian Kent said: -
"The impetus of the improved sales and order levels of last year continued into
2004. Operating Profit for the period is the highest for six years.The
operational gearing effect and the cost-cutting initiatives detailed in 2003
resulted in the return on sales being an exceptional 15.6%(2003 11.4%)"
Financial Highlights
2004 2003
Turnover #17.2m #15.4m
Operating Profit* #2.7m #1.8m
Profit before Tax #2.3m #0.6m
Earnings per share* 6.95p 4.0p
Dividend per share 2.4p 2.2p
Interest cover* 8.7x 5.0x
Margins at an excellent 15.6%*
Operating highlights:
1. Order book at near record levels.
2. Sales growth throughout our key market segments.
3. Operating Profit for H1 up 53% on first half of last year..
4. Interest cover up to 8.7x*.
5 Interim dividend increased by 9% to 2.4p
6. Completion of sale of Hampton Site for #6.5m
* Before goodwill amortisation and exceptional items.
Commenting on the outlook, Mr. Kent added:
"Many of our key energy markets are going well and the order book is very good
to date.This augurs well for the second half trading and we look on course for
an excellent year."
For Further information contact:
Brian Kent, Chairman 020 8941 3774
Chris Wilkins, Group Chief Executive 020 8941 3774
David Hardy/Paul Vann, Binns & Co. 020 7786 9600
or visit the Wellington website: - www.wellingtonholdings.com
Chairman's Statement
The impetus of the improved sales and order levels of the second half of last
year continued into 2004, and we are delighted to report earnings per share,
before goodwill amortisation and exceptional items, of 6.95p, up 73% over the
same period last year. Basic EPS grows from 1.7p to 6.72p. Profit before tax and
exceptional items increased by 77% to #2.3m (2003: #1.3m).
Operating Profit, before goodwill amortisation and exceptional items, increased
by 53% to #2.7m (2003: #1.8m), the highest for 6 years driven by excellent sales
of #17.2m, up 12% on the same period last year. The operational gearing effect,
and the cost-cutting initiatives detailed in the 2003 Annual Report and
Accounts, resulted in the return on sales being an exceptional 15.6% compared
with 11.4% in 2003. These excellent results were achieved despite adverse
currency movement, which reduced translation of sales by #900k and operating
profit by #150k compared with 2003.
Encouragingly, the order intake in the period of #17.8m resulted in a half year
order book at near record levels.
Our strong presence in the global energy sector, where we supply components
which are used in the oil well and gas industry and longwall coal mining, has
been the platform for our good performance.
Oil and gas drilling continue to be strongly up in North America, and the rise
in the world rig count index is continuing. At constant exchange rates our North
American oil and gas sales increased by 22%. Our global mining business returned
to the high levels of H1 2002, with strong demand from Eastern Europe and the
Far East. Energy-related markets generated 30% of Group Sales in the period
after currency fluctuations in line with last year.
The Fluid Power market sector however, now accounts for 68% of Group sales
(2003: 62%) with Process the balance.
In the North American construction sector our mobile equipment sales increased
by 14% at constant rates. Mobile equipment and Automation sales accounted
respectively for 26% and 44% of turnover the same as last year.
Despite a slow market, new initiatives in our German company increased our sales
in that Region, and strong mining sales in Eastern Europe benefited our French
operation. With the strengthening Euro, the percentage of Group sales in Europe
is now 26% from 21% in 2003. North American sales moved to 45% from 47%, and
Asia Pacific remained at 14%, with the Australian market boosted by strong
mining business and the expected growth of sales from the acquisition of PH
Seals in Adelaide at the start of the year.
Business was flat in the UK and sales fell from 18% to 15% of group turnover.
Financial
Capital expenditure of #724k was in line with depreciation reflecting the
increased capacity installed in previous years, and the forthcoming site
re-development. Operating cash flow ratios continue to improve and, as in
previous years, the second half cash flow will be stronger than the first.
Interest cover, before goodwill amortisation, is now a healthy 8.7 times.
Interim Dividend
The Board has decided to increase the interim dividend to 2.4p payable on 30
November 2004 to shareholders on the register at 1 October 2004, an increase of
9% on last year. The level of the final dividend will be reviewed at the end of
the year.
Hampton Site Redevelopment
Following my announcement at the AGM, we have received planning permission for
the construction of a new factory and the contract to sell the Hampton site for
#6.5m has been signed. The new building will take up approximately half the site
and the move into the new facility is planned to be completed early in 2006 with
no interruption to production during the construction phase.
A dedicated team has planned the design and execution of this key task during
this half year and the next 15 months will be key to the project's success.
We will have a modern factory giving the opportunity of eliminating the many
non-added value operations which are inevitable from our present operations
involving some eleven buildings dating from the 1920s. The new factory will
complement our already modern machinery and provide an ideal environment for
strong sales growth in future years.
Board of Directors
Mr. David Jones, B.Sc. (Hons) in (Physics and Materials Science), aged 53 years,
is appointed Group Managing Director effective from 1st November 2004.
Mr. Chris Wilkins has decided, for family reasons, to reduce his travelling and
business commitments but has agreed to continue as a Director and progressively
hand over his executive responsibilities in the next three months.
Future Prospects
Many of our key energy markets are going well and the order book is very good to
date.
This augurs well for the second half trading and we look on course for an
excellent year.
B.H. Kent
Chairman
Wellington Holdings PLC
Group Profit and Loss Account
Results For Half Year Ended 30th June 2004
Half Year Half Year Full Year
To 30 June 2004 To 30 June To 31 December
2003 2003
(Unaudited) (Unaudited)
#'000 #'000 #'000
Turnover 17,204 15,354 31,001
Cost of sales (9,654) (9,143) (18,313)
------ ------ ------
Gross Profit 7,550 6,211 12,688
Sales and Distribution costs (1,941) (1,751) (3,389)
Administration expenses (2,982) (3,478) (6,704)
--------------------- ----------- --------- ----------
Operating profit before goodwill
amortisation and exceptional
item 2,683 1,751 3,795
Goodwill amortisation (56) (82) (147)
Exceptional item - (687) (1,053)
--------------------- ----------- --------- ----------
Operating profit 2,627 982 2,595
Net interest payable (308) (352) (682)
------ ------ ------
Profit before taxation 2,319 630 1,913
Taxation (718) (227) (527)
------- ------- -------
Profit after taxation 1,601 403 1,386
Ordinary dividend (572) (522) (1,545)
------ ------ ------
Retained profit/(loss) 1,029 (119) (159)
==== ==== ====
Basic Earnings per share 6.72p 1.70p 5.84p
Diluted Earnings per share 6.66p 1.68p 5.80p
Pro Forma Earnings Per Share 6.95p 4.00p 9.57p
Net Ordinary Dividend Per Share 2.40p 2.20p 6.5p
Consolidated statement of total
recognised gains and losses
Profit for the period 1,601 403 1,386
Currency translation difference on
foreign currency net investments (173) 237 279
------- ------- -------
Total gains and (losses) relating
to the financial period 1,428 640 1,665
==== ==== ====
Consolidated Balance Sheet as at 30 June 2004
30 June 04 30 June 03 31 December 03
(Unaudited) (Unaudited)
#'000 #'000 #'000
Fixed Assets 12,628 13,322 12,663
------- ------- -------
Current Assets
Stocks 5,267 4,641 4,922
Debtors 7,177 5,898 5,853
Cash at bank and in hand 797 500 961
------- ------- -------
13,241 11,039 11,736
Creditors-amounts falling due
within one year (10,059) (7,020) (8,877)
------- ------- -------
Net Current Assets 3,182 4,019 2,859
Creditors-amounts falling due
after more than one year (5,995) (8,309) (6,640)
Provisions for liabilities and
charges (404) (522) (369)
------- ------- -------
Net Assets 9,411 8,510 8,513
==== ==== ====
Called up Share Capital 2,383 2,376 2,377
Share Premium Account 3,250 3,214 3,214
Capital Redemption Reserve 1,569 1,569 1,569
Profit and Loss Account 2,209 1,351 1,353
------- ------- -------
Equity Shareholders Funds 9,411 8,510 8,513
==== ==== ====
Consolidated cash flow statement for the half year ended 30 June 2004
Half year Half year Full year
ended ended ended
30 June 2004 30 June 2003 31 December
2003
(Unaudited) (Unaudited)
#'000 #'000 #'000
Net cash flow from operating
activities 2,264 830 3,263
Returns on investments and servicing of
finance (308) (362) (682)
Taxation (537) (245) (447)
Capital expenditure and financial
investment (724) (667) (1,158)
Acquisitions and disposals (198) - -
Equity dividends paid (1,023) (1,019) (1,542)
--------- --------- ---------
Net outflow before financing (526) (1,463) (566)
Financing (347) (67) (619)
------- ------- -------
(Decrease)/Increase in cash (873) (1,530) (1,185)
------- ------- -------
Reconciliation of net cash flow to
movement in net debt
(Decrease)/Increase in cash in
the period (873) (1,530) (1,185)
Cash inflow/(outflow) from debt and
lease financing 389 112 665
------- ------- -------
Change in net debt resulting from cash
flow (484) (1,418) (520)
Translation difference 166 189 784
------- ------- -------
Movement in net debt in period (318) (1,229) 264
Net debt at beginning of period (9,624) (9,888) (9,888)
------- ------- -------
Net debt at end of period (9,942) (11,117) (9,624)
==== ==== ====
Notes:
1. The interim report and accounts have been prepared using the
accounting policies set out in the last annual report. The comparative figures
for the year ended 31 December 2003 are not the company's statutory accounts for
the financial year. Those accounts have been reported on by the company's
auditors and delivered to the Registrar of Companies. The report of the auditors
was unqualified and did not contain a statement under Section 237(2) or (3) of
the Companies Act 1985.
2. The interim dividend of 2.40p net per share will be paid on 30
November 2004 to shareholders on the register at 1 October 2004.
3. Earnings per share have been calculated by reference to the
average number of Ordinary shares of 10p each in issue in the period, being
23,817,996, and on the profit after taxation.
The pro-forma earnings per share is calculated after eliminating the
goodwill amortisation and in 2003 the exceptional costs and the tax effects
thereon. The Directors believe that the earnings per share calculated by
adjusting for the above gives a more meaningful indication of the Group's
underlying performance.
4. In the period the company issued 60,000 ordinary shares of 10p each
arising from an exercise of share options at exercise prices of 62.5p and 85p.
This resulted in an increase in shareholder funds of #42,050.
5. On 5 January 2004 the Company completed the acquisition of the South
Australian seal distributor, PH Seals Pty. Ltd. in Adelaide for a cash
consideration of #198,000 (A$510,000) including costs.
6. Copies of the Interim Results are being sent to all registered
shareholders. Further copies may be obtained upon request from the Company
Secretary at 130 Oldfield Road, Hampton, Middlesex TW12 2HT, and can be viewed
on the company's website: www.wellingtonholdings.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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